M/s Hemangi Plastics Pvt Ltd, Kolkata V. A.C.I.T CC - XXIV,kolkata, Kolkata

ITA 1917/KOL/2013

• Counselvise Citation: 191723514 RSA 2013
• Duration Of Justice: 1 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 17-06-2013
• Court: TRIBUNAL
• Department Lawyers: SANJAY SR DR
• Assessee Lawyers: S K TULSIYAN
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA [BEFORE HON BLE SHRI B.P.JAIN, AM] I.T.A NO.1917 /KOL/2013 ASSESSMENT YEAR: 2003 - 04 M/S. HEMANGI PLASTICS PVT. LTD. VS A.C.I.T., CENTRAL CIRCLE - XXIV, KOLKATA . KOLKATA (APPELLA NT) ( RESPONDENT) (PAN: AAACE 5350 J) FOR THE APPELLANT : SHRI S.K.TULSIYAN, FCA FOR THE RESPONDENT : SHRI SANJAY, SR.DR, ADDL. C.I.T. DATE OF HEARING : 01.06 .2015. DATE OF PRONOUNCEMENT: 01.06 .2015. ORDER PER SHRI B.P. JAIN, AM : THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF LD.CIT(A) - CENTRAL - III , KOLKATA DATED 18.04.2013 FOR ASSESSMENT YEAR 2003 - 04. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. THE ORDERS PASSED BY THE LOWER AUTHORITIES ARE ARBITRARY, ERRONEOUS, WITHOUT PROPER REASONINGS, INVALID AND BAD IN LAW, TO THE EXTENT TO WHICH THEY ARE PREJUDICIAL TO THE INTERESTS OF THE APPELLANT. 2(A) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) ERRED IN UPHOLDING THE A DDITION OF THE SUM OF RS. 9,16,308/ - U/S 68 OF THE INCOME - TAX ACT, 1961, BY CONSIDERING THE RECEIPT OF THE SAID AMOUNT AS UNEXPLAINED IN SPITE OF THERE BEING AMPLE EVIDENCES ABOUT THE GENUINENESS OF THE SAID RECEIPT OF MONEY BY THE APPELLANT BY WAY OF SAL E OF SHARES. 2(B) WITHOUT ANY PREJUDICE TO ABOVE, THE LEARNED CIT(A) ERRED IN UPHOLDING THE ADDITION OF THE SUM OF RS. 9,16,308 / - SEPARATELY U/S 68 OF THE ACT, NEGLECTING TO TAKE INTO ACCOUNT THE FACT THAT THE AMOUNT HAD ALREADY BEEN CREDITED TO THE ACCOUNT S OF THE APPELLANT AS SALE PROCEEDS OF SHARES THUS LEADING TO A P OSITION OF DOUBLE ADDITION OF THE SAME AMOUNT. 3. THE APPELLANT CRAVES LEAVE TO AMEND, ALTER, MODIFY, SUBSTITUTE, ADD TO, ABRIDGE AND/OR RESCIND ANY OR ALL OF THE ABOVE GROUNDS. 3. THE BRIEF FACTS OF THE CASE ARE THAT AO FOUND CREDIT OF RS.2,50,000/ - AND RS.6,66,308/ - HAVING RECEIVED FROM SHRI SHANKAR LAL GODH AND SHRI SUNIL KR. JAIN ITA NO. 1917 /KOL/2013 M/S. HEMANGI PLASTICS PVT. LTD A.YR. 2003 - 04 2 RESPECTIVELY. THE IDENTITY OF SUCH PERSONS COULD NOT BE PROVED AND THE AO ADDED THE SAME TO THE INCOME OF THE ASSESSEE BEING UNEXPLAINED U/S 68 OF THE ACT. THE LD. CIT(A) CONFIRMED THE ACTION OF THE AO. 4. THE ISSUE IN THE PRESENT CASE IS IDENTICAL TO THE ISSUE IN THE CASE OF M/S.ELDOT COMMOTRADE (P)LTD. IN ITA NO.1916/KOL/2013 DECIDED BY ME ON EVEN DATE . THE REFORE MY ORDER IN THE CASE OF M/S. ELDOT COMMOTRADE (P)LTD IS IDENTICALLY APPLICABLE IN THE PRESENT CASE EXCEPT THE AMOUNT WHICH ARE SUBSTITUTED AS MENTIONED HEREIN ABOVE. FOR THE SAKE OF CONVENIENCE ORDER IN THE CASE OF M/S.ELDOT COMMOTRADE (P) LT D. OF EVEN DATE IS REPRODUCED HEREIN BELOW : - 6. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I DO NOT AGREE WITH THE CONTENTIONS MADE BY THE LD. DR THAT THE SAID AMOUNT RECEIVED IS A CASE OF CASH CREDIT U/S 68 OF THE ACT. SINCE THE ASSESSEE HAD DECLARED THE INVESTMENT IN THE FORM OF SHARES PURCHASES WHICH HAS BEEN SOLD TO THE SAID PERSONS AND IT IS A SUBSTITUTION OF ONE ASSET IN PLACE OF ANOTHER ASSET I.E. SHARE INVESTMENT HAS BEEN CONVERTED INTO BANK BALANCE WHICH AR E PART OF THE BALANCE SHEET AND SALES SO MADE HAVE BEEN CREDITED TO THE ACCOUNT OF THE REVENUE I.E. PROFIT AND LOSS ACCOUNT/INCOME ACCOUNT. THE AO BY MAKING THE ADDITION U/S 68 OF THE ACT IS MAKING A DOUBLE ADDITION WHICH IS NOT PERMISSIBLE UNDER LAW. IN T HE CIRCUMSTANCES AND FACTS OF THE CASE THE AO IS NOT JUSTIFIED IN MAKING THE DOUBLE ADDITION AND THE ORDER OF THE LD. CIT(A) IS ACCORDINGLY REVERSED. THUS ALL THE GROUNDS OF APPEAL OF ASSESSEE ARE ALLOWED. 5. IN THE CIRCUMSTANCES AND FACTS OF THE CASE FO LLOWING THE DECISION IN THE CASE OF M/S.ELDOT COMMOTRADE (P)LTD. IN ITA NO.1916/KOL/2013 , NO DOUBLE ADDITION CAN BE MADE IN THE PRESENT CASE AS WELL. THEREFORE THE ADDITION SO MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) ARE DIRECTED TO BE DELETED. THUS GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED. 6 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDE R PRONOUNCED IN THE OPEN COURT ON 01.06 .2015. SD/ - [ B.P.JAIN ] ACCOUNTANT MEMBER DATE: 01.06 .2015. R.G.(.P.S.) ITA NO. 1917 /KOL/2013 M/S. HEMANGI PLASTICS PVT. LTD A.YR. 2003 - 04 3 C OPY OF THE ORDER FORWARDED TO: 1 . M/S.HEMANGI PLASTICS PVT. LTD., 133, CANNING STREET, 3 RD FLOOR, KOLKATA - 700001. 2 A.C.I.T., CENTRAL CIRCLE - XXIV, KOLKATA. 3 . CIT(A) - CENTRAL - III, KOLKATA 4. CIT - KOLKATA. 5. CI T - DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES